On October 22, 2024, ONGC shares dipped 0.65% to ₹274.9 amidst a subdued trading session, with both the Sensex and Nifty indices also showing declines.
ONGC, India’s largest oil and gas producer, is under pressure as the broader market shows weakness, and the stock continues to trade below key moving averages, signaling potential further downside.
Key Developments for ONGC Stock Today
- Opening Price: ₹277.25
- Day’s Range: High of ₹278.10, Low of ₹272.40
- Current Price (11:17 AM): ₹274.9, down by 0.65%
- Nifty and Sensex Movement: Nifty down by 0.25%, Sensex down by 0.18%
ONGC’s stock has been on a downward trajectory, reflecting broader market weakness and a bearish sentiment across oil stocks. Despite being a dominant player in the energy sector, the company faces challenges due to fluctuating global oil prices and domestic energy demand.
Technical Analysis: Key Moving Averages
The stock is trading below its short and long-term Simple Moving Averages (SMA), signaling bearish momentum. Here’s a look at the SMA levels:
Table: ONGC SMA Analysis (As of Oct 22, 2024)
| SMA Period | SMA Value | Current Price Difference |
|---|---|---|
| 5-day | ₹284.03 | -₹9.13 |
| 10-day | ₹287.30 | -₹12.40 |
| 20-day | ₹291.10 | -₹16.20 |
| 50-day | ₹306.46 | -₹31.56 |
| 100-day | ₹298.29 | -₹23.39 |
| 300-day | ₹278.78 | -₹3.88 |
These technical indicators suggest the stock faces strong resistance at higher levels. ONGC’s near-term outlook remains bearish unless it breaks through key resistance levels.
Fundamental Analysis: ONGC’s Financial Health
- Return on Equity (ROE): 15.88%
- Price-to-Earnings (P/E) Ratio: 7.91
- 1-Year Target Price: ₹330, indicating a forecasted upside of 20.04%
Despite short-term technical weakness, ONGC remains a fundamentally strong company with attractive valuations. The stock is currently trading at a low P/E ratio, making it an appealing long-term play for value investors.
Market Sentiment and Peer Comparison
- Peer Performance: ONGC’s peers show mixed performance today. While Reliance Industries and Hindustan Petroleum are also down, Oil India shows signs of strength, outperforming ONGC.
- Volume Trends: Trading volumes for ONGC have dropped by 64.22% compared to the previous session, suggesting a lack of strong buying interest at current levels.
What’s Next for ONGC?
The stock faces resistance at ₹278.10 and key support levels around ₹272.4. If ONGC breaks below these support levels, further downside could be expected. On the upside, a recovery above ₹291 could signal a bearish trend reversal.
Investors should monitor global oil prices and domestic energy policies closely, as these factors will likely influence ONGC’s stock performance in the coming weeks.
Disclaimer
This article is for informational purposes only and does not constitute financial advice.
